Considering working part-time?

If you are considering working part-time there are a few things you need to consider.

ACCUMULATION MEMBERS:

What is the impact of part-time hours on your superannuation benefit?

When you work part-time your salary or wages will reduce, this ultimately reduces the employer contributions and any salary sacrifice contributions you made to superannuation account.  This is because they are a percentage of your salary.

For example if you change your work hours from 100% to 50%, your gross income and therefore your employer and salary sacrifice superannuation contributions will also reduce by the same proportion.

What happens to your insurance?

When you move from full time to part-time work, your insurance cover does not automatically reduce proportionately with your salary. This is because the level of cover is based on your full time equivalent salary.  However, as a part-time employee, you have the opportunity to elect a lower level of insurance cover to be based on your part-time salary. This change will result in a reduction in your level of insurance cover and associated premiums.

If you do elect to lower your insurance cover to be based on your part-time salary, any subsequent request to increase your insurance cover while you remain on a part-time will be subject to an underwriting assessment by the insurer.

To adjust your cover complete the ‘Adjusting your Insurance cover form’ which can be found on the Plan website www.alcoasuper.com.au or by calling the Plan Helpline on 1800 355 028.
 
DEFINED BENEFIT MEMBERS

What is the impact of part-time hours on your superannuation benefit?

If you are in the Defined Benefit section of the Alcoa Super Plan and begin working part-time your accrued Defined Benefit and any supplementary accumulation account balances will not reduce as a result of you working part-time. 

However, your future Defined Benefit accrual and any contributions made to your supplementary accumulation account will be lowered in proportion to your reduced hours.   For more detailed information on the calculation of your defined benefit when you become part-time please see the Defined Benefit Section: reducing your working hours fact sheet which can be found on the Plan website www.alcoasuper.com.au or by calling the Plan Helpline on 1800 355 028.

What happens to your insurance?

If you are a Defined Benefit member and you reduce your working hours, your insurance in the Alcoa Super Plan will not be affected. This is because the insurance is based on a formula which includes your full time equivalent salary which does not change when you work part-time.  The cost of the insurance does not change and is still included as a Defined Benefit plan benefit paid for by your employer.

 
 This News Item is issued by Alcoa of Australia Retirement Plan Pty Ltd ABN 80 065 702 454 RSE Licence no L0002974, as Trustee of the Alcoa of Australia Retirement Plan ABN 80 928 800 255 Registration No R 1057058 

1 April 2021